On the balance of probabilities where you own a flat in Hambleton you actually own a long leasehold interest over your property
Leasehold residencies in Hambleton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hambleton can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hambleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Hunter, came precariously near to the eighty-year mark with the lease on his leasehold apartment in Hambleton. In buying his property two decades ago, the unexpired term was of minimal significance. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Hunter arranged for a lease extension just under the wire last July. Hunter and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £850.
In 2011 we were approached by Mr and Mrs. V Miller who, having completed a recently refurbished apartment in Hambleton in January 2001. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar flats in Hambleton with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 billed annually. The lease ended on 28 April 2106. Considering the 80 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were e-mailed by Dr I Gunderson who, having purchased a first floor flat in Hambleton in January 2012. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable flats in Hambleton with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2086. Taking into account 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus costs.